Google reportedly preparing to buy HTC's phone division

[Nowak]

Sauce: https://www.phonearena.com/news/Report-HTC-and-Google-in-final-stage-of-negotiation-regarding-sale-of-smartphone-business_id97829

 

It's not a secret at all that HTC is not doing so well financially. Revenue is at its lowest in years, and not even well-received phones like the HTC 10 and U11 are doing much to reverse that trend.

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It may sound like beating a dead horse, and at this point writing it certainly feels that way, but here goes: HTC is in very bad shape. This has been true for a while now, especially following the failure of the HTC 10, though we did for a while think its latest U11 was going to go at least some way towards fixing that problem.

But that obviously didn't happen, as proven by the Taiwanese phone maker's latest financials report showing August was its worst month in the past 13 years. Revenue dropped by 51.5 percent compared to last month and 54.3 percent from last August — ouch.

Or in other words, most of the people who were going to buy a U11 have already done so, and its popularity can only go downwards. Which is troubling, considering the company has no other recent devices in its repertoire (the Desire 555 is already unavailable for purchase, just a month and a half after its release).

 

However, HTC is the manufacturer of the Google Pixel smartphone, and will be manufacturing the smaller of the two Pixel phones for this year (the bigger Pixel will be manufactured by LG, meanwhile.) So, to avoid this, HTC and Google are reportedly in the final stages of talks for Google to buy its smartphone business. However, the Vive is not part of the deal.

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But here's the most interesting part: it seems HTC is in "final stage of negotiation" with Google regarding a sale of its smartphone business. According to Chinese-language publication Commercial Times, Google is considering two separate options: either becoming a strategic partner, or outright buying the entire smartphone unit. However, HTC's Vive is off the table, and will remain separate from the search giant.

 

This is not surprising, due to the close relationship between Google and HTC through the Pixel. Although, LG is still manufacturing one of the two Pixel handsets for this year, rather than HTC building both.

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This doesn't exactly come as a surprise, given how last year's Google Pixel duo, as well as one of this year's Pixel 2 models, are all manufactured by HTC. However, even Google isn't satisfied by HTC's smartphone building prowess, as it turned to LG for its larger, full-screen Pixel 2 model.

Due to that, while this would be a strategic move for Google, it's not likely gonna convince Google to bring their smartphone business entirely in-house.

 

While it might be easy to get excited over this because it means Google will be able to make its own hardware in-house, let's not forget Google's buyout of Motorola, which ended in Motorola being sold to Lenovo, and Microsoft's disastrous buyout of Nokia's phone division, which ended in Microsoft washing its hands of Nokia. Regardless, thoughts? Comments? Screams of agony?

[captain_to_fire]

46 minutes ago, Daring said:

While it might be easy to get excited over this because it means Google will be able to make its own hardware in-house, let's not forget Google's buyout of Motorola, which ended in Motorola being sold to Lenovo, and Microsoft's disastrous buyout of Nokia's phone division, which ended in Microsoft washing its hands of Nokia. Regardless, thoughts? Comments? Screams of agony?

I hope Google won't toss HTC to the trash like how Microsoft did it with Nokia. The baby steps of Android was actually because of HTC. Anyone remember the T-Mobile G1 and the Nexus One? Those were HTC made phones. 

 

 

Edited September 8, 2017 by hey_yo_

[Indus Monk]

Welp, that's either great news or grim news. 

Though i think its great. Remember when Google bought Motorola? About three or so years later, they were sold to Lenovo. BUT, Moto came back from the dead. Not to the top, but they didn't go bankrupt. PLUS, their new phones run nearly stock Android with ONLY 3 or 4 pretty useful gestures. I have a Motorola phone with me as a daily driver. Its pretty good! 

[Indus Monk]

2 minutes ago, hey_yo_ said:

I hope Google won't toss HTC to the trash like how Microsoft did it with Nokia. The baby steps of Android was actually because of HTC. Anyone remember the T-Mobile G1 and the Nexus One? Those were HTC made phones. 

 

Why do people ignore the HTC one M7? didn't that phone gave us the unibody all aluminum design and the front facing speakers? 

[captain_to_fire]

4 minutes ago, AmbarChakrabarti said:

Why do people ignore the HTC one M7? didn't that phone gave us the unibody all aluminum design and the front facing speakers? 

Crappy cameras is probably one of the reason. Back in 2013, smartphone cameras either have 8, 12. 13, 20, or 41 megapixels, HTC said screw that and we'll do 4 megapixel ultrapixel camera which didn't come close to the photo quality of the GS4 or the iPhone 5s even though it's true that more megapixels doesn't necessarily mean a better picture. 

[abazigal]

8 minutes ago, AmbarChakrabarti said:

Why do people ignore the HTC one M7? didn't that phone gave us the unibody all aluminum design and the front facing speakers? 

The camera and software wasn’t very fantastic. It was an okay experience overall, but nothing spectacular compared to the competition. 

[david cassar]

2 minutes ago, hey_yo_ said:

Crappy cameras is probably one of the reason. Back in 2013, smartphone cameras either have 8, 12. 13, 20, or 41 megapixels, HTC said screw that and we'll do 4 megapixel ultrapixel camera which didn't come close to the photo quality of the GS4 or the iPhone 5s even though it's true that more megapixels doesn't necessarily mean a better picture. 

Crappy cameras aside the htc one m7 and m8 were probably the best android phones of their generation. Their design and build quality was miles ahead of what samsung was offering.

[Alariel]

I'm gonna cautiously prepare for the screams of agony option, but will wait and see what actually happens.

[captain_to_fire]

22 minutes ago, david cassar said:

Crappy cameras aside the htc one m7 and m8 were probably the best android phones of their generation. Their design and build quality was miles ahead of what samsung was offering.

Design and their HTC sense UI is indeed superior than what Samsung is offering with their GS3 to GS5 with designs featuring a flimsy polycarbonate plastic and faux metal trim which makes a flagship phone feel cheap not to mention their bloated Touch Wiz UI that cripples Android despite Jelly Bean and Kit Kat's Project Butter improvements. I think the GS5 design was mocked because the perforated design resembles a band aid from Johnson & Johnson. 

 

 

Not to mention HTC is known for superior stereo speakers with Boom sound unlike GS3-GS5's single firing rear speakers. 

Edited September 8, 2017 by hey_yo_

[Trixanity]

From what I've heard Google was pressured by OEMs (especially Samsung) to sell off Motorola. I can't remember what they got in return; think it was something to do with being more compliant with Google's guidelines.

 

The market has matured significantly in the meantime and I believe the OEMs will more easily accept Google joining the market fully.

 

HTC has had some peculiar manufacturing limitations resulting in less than stellar devices. Whether that has come from the manufacturing arm itself or poor design choices I don't know. I hope Google can rectify that (if they also pick up factories in the deal).

 

Motorola was definitely worse off after the sale. Lenovo pretty much wrecked the brand and are just now realizing that they have a tendency to destroy the things they acquire. They're trying to change that with upcoming devices but I have my doubts.

[Teddy07]

I think there are too many smartphone companies out there which leads to too much competition. I am not loyal to any brand as I will buy the best smartphone for my budget after reading some reviews.

[Fjolfrin]

Should a company acquire HTC from Google if and when it gets it, what company do you think it would be? Although I don't think this would happen. Google has a good relationship with HTC due to the Pixel line. If Google buys HTC, it will probably stay there.

[GOTSpectrum]

3 minutes ago, Fjolfrin said:

Should a company acquire HTC from Google if and when it gets it, what company do you think it would be? Although I don't think this would happen. Google has a good relationship with HTC due to the Pixel line. If Google buys HTC, it will probably stay there.

Good question, mine is, If the sale goes through, will they keep the HTC branding or rebrand with pixel, or Google? I'd love to see the Nexus Branding return for low cost Google phones and pixel for the top end, although I know this isn't all that likely.

[dfsdfgfkjsefoiqzemnd]

1 hour ago, david cassar said:

Crappy cameras aside the htc one m7 and m8 were probably the best android phones of their generation. Their design and build quality was miles ahead of what samsung was offering.

I'd still rate them as some of the best smartphones today.  You just can't top those front-facing Boomsound speakers.  There's not a single phone on the market that comes anywhere near that audio quality.  To me that makes up for the mediocre camera and the large (even by 2014 standards) bottom bezel.

 

The problem is that there was no actual improvement after the M8.  The M9 was overheating like it wanted to go into the history books as the biggest contributor to global warming, the HTC 10 completely effed up in the sound department.  When they released the 10, I knew it was basically over.

 

[mach]

the moto x series was superb but google ruined it by selling motorola to lenovo.

So sad there'll be no more moto x.

I liked motorola a lot but I'll never buy a chinese phone. 

 

There will be some great products while google own htc. Let's hope it doesn't get sold to the chinese soon.

[Mihle]

If they buy HTC, I really hope they dont sell it to Lenovo or something again.

[Fjolfrin]

1 hour ago, Ben Quigley said:

Good question, mine is, If the sale goes through, will they keep the HTC branding or rebrand with pixel, or Google? I'd love to see the Nexus Branding return for low cost Google phones and pixel for the top end, although I know this isn't all that likely.

I don't think Nexus will return. Google went with Pixel to create a new premium line. Nexus was the android phone for everyone. And money has to be made, sooooooo...

 

[GOTSpectrum]

15 minutes ago, Fjolfrin said:

I don't think Nexus will return. Google went with Pixel to create a new premium line. Nexus was the android phone for everyone. And money has to be made, sooooooo...

 

Yeah I don't think it will return either, but a man can dream, god damn it! *Tears start to appear* a man can dream.

 

But seriously, if they are buying a whole division I'd be surprised if only one or two phones a year are made... That's apples job.

[Trixanity]

10 minutes ago, Ben Quigley said:

But seriously, if they are buying a whole division I'd be surprised if only one or two phones a year are made... That's apples job.

Indeed. It would be silly to buy HTC to make two or three devices a year and probably making less than 10 (if not less than 5) million units a year. 

 

Would be smarter to contract their manufacturing like they do now if that was the case. It probably still is regardless of their intentions.

[GOTSpectrum]

1 hour ago, Trixanity said:

Indeed. It would be silly to buy HTC to make two or three devices a year and probably making less than 10 (if not less than 5) million units a year. 

 

Would be smarter to contract their manufacturing like they do now if that was the case. It probably still is regardless of their intentions.

I guess it depends what IP and patents come with the purchase. We all know Moto was only bought to strip it of its patents to hello Google with the lawsuits there were involved in at the time.

[Misanthrope]

 

Seriously they don't seem to need a hardware division at all and I don't believe HTC holds major patents or anything like that. Is it because they might get em on the cheap though? They also don't strike me as venture capitalist types.

[TidaLWaveZ]

55 minutes ago, Misanthrope said:

 

Seriously they don't seem to need a hardware division at all and I don't believe HTC holds major patents or anything like that. Is it because they might get em on the cheap though? They also don't strike me as venture capitalist types.

Probably easier and cheaper than having to strike up deals with hardware manufacturers every time they produce a phone. Plus they basically have full control over any hardware decisions.

[Misanthrope]

10 minutes ago, TidaLWaveZ said:

Probably easier and cheaper than having to strike up deals with hardware manufacturers every time they produce a phone. Plus they basically have full control over any hardware decisions.

Not to continue an endless line of questions but why does Google need to produce phones? I don't think that having a quintessential pure android phone is that important that they need to spend billions on a dying phone manufacturer.

 

 

[TidaLWaveZ]

9 minutes ago, Misanthrope said:

Not to continue an endless line of questions but why does Google need to produce phones? I don't think that having a quintessential pure android phone is that important that they need to spend billions on a dying phone manufacturer.

 

 

You know the answer, it's always the answer.

 

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

You get a company a lot cheaper when they are failing.

[Misanthrope]

1 minute ago, TidaLWaveZ said:

You know the answer, it's always the answer.

 

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

You get a company a lot cheaper when they are failing.

Only partially true: there's usually a reason why they're failing and often times is not something that can be solved. If it was another electronics manufacturer I can see being able to get assets for cheap as a good investment but Google has no such expertise they'd be sinking money to buy them and then to fix them and they're probably never gonna get ahead of major competitors anyways. 

 

I think there's more to it but honestly don't know what it might be.